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Djibouti Launches Carbon Pricing to Tackle Emissions Challenges

3/5/2026

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Summary

Story summary

Djibouti established a carbon pricing system managed by the Sovereign Carbon Agency to regulate emissions from its port that serves 95% of Ethiopia's trade.
The levy is $17 per tonne on carbon emissions and funds local projects.
The system emerged as aid cuts from the United States limited response to crises.
Experts say the model could inspire other African nations, though concerns remain that unilateral taxation may hinder decarbonization.

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Story summary

Djibouti established a carbon pricing system managed by the Sovereign Carbon Agency to regulate emissions from its port that serves 95% of Ethiopia's trade.
The levy is $17 per tonne on carbon emissions and funds local projects.
The system emerged as aid cuts from the United States limited response to crises.
Experts say the model could inspire other African nations, though concerns remain that unilateral taxation may hinder decarbonization.